Working together to provide customers more equipment, solutions, and services for their businesses<\/p>\n
Ritchie Bros., a global asset management, disposition, and services company; and Europe\u2019s leading plant and machinery auction house, Euro Auctions, have jointly announced that they have entered into an agreement under which Ritchie Bros. will acquire Euro Auctions group for an enterprise value of \u00a3775 million (approximately US$1.08 billion).<\/p>\n
Founded in 1998, Euro Auctions conducts unreserved heavy equipment auctions with onsite and online bidding under the brands Euro Auctions and Yoder & Frey, with 200+ employees in 14 countries. In 2020 the company conducted 60 auctions, selling close to 90,000 items for \u00a3484+ million across its nine locations in the United Kingdom,\u00a0Northern Ireland, Germany, Spain, the United Arab Emirates, Australia, and the United States.\u00a0Similar to\u00a0Ritchie Bros., Euro Auctions also sells items through a timed auction format and a daily marketplace with Buy Now and Make Offer options.<\/p>\n
\u201cRitchie Bros. and Euro Auctions are an ideal fit with a united goal\u00a0to make asset insights, service offerings and disposition solutions easier than ever,\u201d said Ann Fandozzi, Ritchie Bros. CEO. \u201cEuro Auctions has an incredibly talented team, with expertise in asset sourcing, auction operations, sales, and customer service. Their \u2018can do\u2019 attitude and entrepreneurial spirit combined with technology has helped them adapt and grow, in much the same way as we have.\u00a0This acquisition significantly accelerates our strategy to drive revenue and earnings growth and add shareholder value by continuing to expand our capabilities in new channels, sectors, regions, and customer segments.\u201d<\/p>\n
Euro Auctions Founder and Director Derek Keys added, \u201cDave Ritchie and his brothers were a big inspiration for my brothers and I in the creation of Euro Auctions. We modeled much of what we do off Dave\u2019s customer-centric philosophy, which still runs through Ritchie Bros. today. Bringing us together will drive value for customers, as we provide more equipment, solutions, and services to the many industries and regions in which we operate.\u201d<\/p>\n
Ritchie Bros. will be retaining Euro Auctions employees and its brand, both of which are highly regarded in the EMEA region. This will expand Ritchie Bros.\u2019 overall footprint and access to equipment, while also tapping into new revenue streams with service offerings to Euro Auctions customers, including inventory management services, data solutions, financing, warranty, insurance, inspections, refurbishing, shipping, and more.<\/p>\n
Strategic Rationale for the Acquisition:<\/strong><\/p>\n Under the terms of the transaction, Ritchie Bros. will acquire 100% of the equity of the companies comprised within the Euro Auctions group for an enterprise value of\u00a0\u00a3775 million (approximately US$1.08 billion)\u00a0in cash. This represents an implied multiple of ~15.3x 2021E EBITDA (non-GAAP measure), including run rate synergies. Ritchie Bros. intends to finance the transaction through a combination of cash on hand and new debt; and has bridge financing commitments from Goldman Sachs Bank USA subject to customary terms and conditions to facilitate the transaction close. Following the close of the transaction and the required financing, Ritchie Bros. is expected to have an adjusted net debt to adjusted EBITDA ratio (non-GAAP measure) of approximately 3.9x.<\/p>\n Ritchie Bros. has secured employment arrangements with key management of the Euro Auctions business, including Derek Keys,\u202fwho will continue to be involved for a minimum of three years post-closing.\u00a0 It is intended that Jonnie Keys will assume a senior leadership position, and Lynden and Trevor Keys will be retained as sourcing leads.<\/p>\n The transaction was approved by the Board of Directors of Ritchie Bros. and is expected to close in late 2021 or early 2022, subject to regulatory clearances and the satisfaction of other customary closing conditions.<\/p>\n www.ritchiebros.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"\n